AsemconnectVietnam - I.P.A Investment Group Corporation (code IPA - HNX floor) recorded a decline in business in the first quarter of 2025, and is currently losing VND584.32 billion when investing in Century Real Estate Joint Stock Company.

In the first quarter of 2025, I.P.A Investment recorded revenue of VND105.67 billion, up 23.5% over the same period, but after-tax profit decreased by 80.6% over the same period, to VND20.37 billion. In which, profit margin improved from 31.6% to 42.4%.
During the period, gross profit increased by 65.8% over the same period, equivalent to an increase of VND17.77 billion, to VND44.78 billion; Financial revenue decreased by 36.5%, equivalent to a decrease of VND17.94 billion, to VND31.2 billion; financial expenses increased by 75.6%, equivalent to an increase of VND 59.72 billion, to VND138.75 billion; profit from joint ventures and associates decreased by 16.6%, equivalent to a decrease of VND21.7 billion, to VND109.22 billion; sales and business management expenses increased by 21.9%, equivalent to an increase of VND3.75 billion, to VND20.87 billion and other activities fluctuated insignificantly.
Thus, in the first quarter of 2025, although gross profit increased, I.P.A Investment's net profit still decreased by 80.6%, mainly due to a decrease in financial revenue, a decrease in profit from joint ventures and associates, and especially pressure from high financial costs.
In addition, in terms of core business activities (gross profit - financial expenses - sales & administrative expenses), in the first quarter, I.P.A Investment's core profit recorded a loss of VND114.84 billion compared to the same period of VND69.14 billion.
Thus, the gross profit generated by I.P.A Investment during the period was not enough to cover financial, sales and administrative expenses, the Company escaped losses thanks to financial revenue and at the same time profits from joint ventures and associates.
In terms of asset size, as of March 31, 2025, I.P.A Investment's total assets increased slightly by VND4.2 billion compared to the beginning of the year, to VND8,675.3 billion. Of which, the main assets recorded VND5,830.5 billion in long-term financial investments, accounting for 67.2% of total assets; Short-term receivables recorded VND1,424 billion, accounting for 16.4% of total assets; fixed assets recorded VND607.1 billion, accounting for 7% of total assets and other items.
Notably, also at the end of the first quarter, I.P.A Investment was setting aside up to VND592.04 billion for long-term financial investments. In particular, I.P.A Investment added that it had invested VND928.4 billion in Century Real Estate Joint Stock Company (code CRE - HOSE floor) but set aside a provision of VND 584.32 billion, equivalent to a temporary loss of up to 62.9% of the total investment value.
It is known that I.P.A Investment currently owns 10.91% of charter capital at Century Real Estate Joint Stock Company, a unit operating mainly in the fields of real estate business, investment, consulting, and brokerage of financial services.
In addition, in terms of capital, by the end of the first quarter, I.P.A Investment's total debt decreased slightly by 2.7% compared to the beginning of the year, equivalent to a decrease of VND100.9 billion, to VND3,673.2 billion and equal to 82.6% of total equity. Of which, short-term debt was VND12.3 billion and long-term debt was VND3,660.9 billion.
Another noteworthy point, previously on April 29, the State Securities Commission (SSC) decided to fine I.P.A Investment for violating many regulations on information disclosure in the amount of VND400 million.
N.Nga
Source: VITIC/Tinnhanhchungkhoan